When a group of people stand to gain from an action that is not rational for any of the members to undertake individually, it is referred to as a:
A. moral hazard problem.
B. collective-action problem.
C. societal-wellbeing problem.
D. free-rider problem.
Answer: B
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The short-run macro model
a. is an attempt to explain why the economy tends to perform better in the short run than in the long run b. was developed during the Great Depression to explain the economy's continuing poor performance c. lost its popularity during the 1950s d. was developed during the early 19th century e. explains the forces that work to drive the economy to full employment
The long-run average cost curve is the ______ of all of the firm's _____.
A. lower envelope; isocost lines B. level curve; short-run average cost curves C. sum; marginal cost curves D. lower envelope; short-run average cost curves
As a result of a decrease in price,
a. new buyers enter the market, increasing consumer surplus. b. new buyers enter the market, decreasing consumer surplus. c. existing buyers exit the market, increasing consumer surplus. d. existing buyers exit the market, decreasing consumer surplus.
Substitutes
What will be an ideal response?